Short-term capital gains tax change alters rate application and preserves resident exemption adjustment for reduced net income.

Amendment modifies computation of tax for short-term capital gains on equity shares, equity oriented fund units, and business trust units chargeable to securities transaction tax: tax on such gains is computed at the applicable rate depending on timing of transfer and aggregated with tax on the balance of total income; resident individuals and Hindu undivided families benefit where net total income falls below the tax-free threshold by reducing short-term gains by that shortfall and taxing the remainder at the applicable rate. The amendment operates retrospectively to the operative date.

---

---

---